China Bitcoin Mining Dominance: Is China Secretly Controlling 70% of Global Hashrate?

China bitcoin mining is once again reshaping the global cryptocurrency landscape. While most media outlets report that China’s share of the global bitcoin mining market stands at around 14%, industry insiders and multiple data points suggest a much more substantial presence. In reality, China bitcoin mining may covertly command as much as 70% of the world’s mining power, dramatically outpacing public estimates. This under-the-radar dominance carries major implications for the bitcoin price and the decentralization of the network, particularly as Chinese electricity remains the cheapest and most reliable for large-scale mining operations.

China’s Underground Mining Resurgence: 70% Global Share in the Shadows

After China’s government cracked down on bitcoin mining in 2021, the country’s share of global mining power appeared to plunge. Official data and public blockchain tracking pointed to a steep decline, with the United States and Russia overtaking the lead. Yet, beneath the surface, China bitcoin mining adapted at incredible speed. Underground networks, small-scale operations, and international relocation allowed Chinese miners to keep operating out of the spotlight.

Data Centers and Cheap Power: The Foundation of Dominance

Massive data centers in Xinjiang, Sichuan, and other energy-rich provinces are quietly powering up once again. Hardware sales from major manufacturers such as Canaan show that over 50% of sales in mid-2025 came from Chinese buyers. Miners exploit local electricity surpluses—often hydropower at extremely low rates—drastically reducing operational costs and maximizing mining profitability in China bitcoin mining.

Key Insight:
While IP-based hashrate tracking (often distorted by VPN usage) suggests a 14% market share, industry analysts and hardware sales leaks point to a different reality: Chinese-backed mining pools and facilities likely control up to 70% of actual hash power, especially when counting Chinese-operated overseas pools and relocated ASICs. This concrete dominance is pivotal for both the security and economic future of bitcoin mining and thus, influences the bitcoin price in profound ways.

The Impact of China Bitcoin Mining on the Bitcoin Price

The relationship between China bitcoin mining and bitcoin price is critical for investors and market watchers. When mining power is centralized in regions with the world’s lowest electricity costs, miners enjoy higher profit margins even during market downturns. This creates several knock-on effects:

1. Hashrate Concentration and Mining Profitability

China bitcoin mining pools can secure lower production costs and therefore continue operations, even when the bitcoin price dips sharply or in times of high market volatility. For instance, when the bitcoin price peaked above $126,000 in October 2025, Chinese miners rapidly scaled operations to capture profits. Even after a correction to around $86,500, most Chinese miners remain cashflow positive thanks to cheap power, whereas competitors worldwide may be forced offline.

2. Influence on Bitcoin Price Trends

A 70% dominance in mining gives Chinese miners unparalleled influence. They can potentially affect the pace at which new bitcoin is sold into the market, impacting the bitcoin price. If electricity remains inexpensive in China, more miners may choose to "HODL" rather than sell, reducing immediate coin supply and potentially supporting bitcoin price stability or even further surges. However, centralization also feeds market fears about network security, potentially adding volatility to the bitcoin price during times of regulatory uncertainty or geopolitical tension.

3. Decentralization and Global Sentiment

Widespread recognition of China’s real mining market share could drive a shift in network trust and investor sentiment, both of which are intrinsically tied to the bitcoin price. Markets may react to both perceived risks (regulatory crackdowns, government policy shifts) and opportunities (cost advantages, technological advancements) stemming from China bitcoin mining.

China-Focused Mining Pools: Local Roots, Global Power

Despite local bans, the world’s largest mining pools are still operated or heavily influenced by companies with Chinese roots—AntPool, F2Pool, Poolin, ViaBTC, BTC.com, and Binance Pool collectively account for the lion’s share of pooled hash power. Many of these have formally relocated on paper, establishing new entities in other mining-friendly jurisdictions, but continue to be operated, managed, and supplied by mainland Chinese teams and partners.
This ongoing dominance of China bitcoin mining pools gives Chinese operators a strategic advantage and sustains the country’s quiet monopoly in driving bitcoin mining trends. The scale of this market control can impact the bitcoin price every time new policies, market narratives, or regulatory rumors emerge.

Policy Shifts and the Future of China Bitcoin Mining and Bitcoin Price

Since 2013, each Chinese tightening or easing of crypto policy has had a direct ripple effect on the bitcoin price:

• 2013 & 2017 bans sparked bitcoin price crashes and global market adjustments.

• 2021 total ban saw massive selloffs and a global relocation wave.

• 2025 increased restriction criminalized even private ownership, yet the bitcoin price remained resilient due to market adaptation and mining migration.

Recent developments in Hong Kong, such as efforts to establish a yuan-backed stablecoin, suggest nuanced shifts in Chinese crypto policy. Should mainland China ever soften its regulatory stance, the move could draw even more mining capital back home, accelerating hashrate dominance and possibly driving the bitcoin price even higher as network costs fall further.

Are Chinese Miners Profitable? The Economics Behind 70% Hashrate Dominance

In the post-halving environment, profitability is determined by a delicate balance of bitcoin price, mining difficulty, and electricity cost:

• At $86,500 per bitcoin, most Chinese miners running modern (e.g., Bitmain S21) hardware and paying <$.03/kWh are operating very profitably.

• All-in costs for efficient Chinese miners can be less than $40,000/BTC, while global averages (especially in the US/EU) often exceed $60,000–$100,000—creating a margin advantage that allows China bitcoin mining to thrive in all market conditions.

• When the bitcoin price dips, overseas miners are pushed offline, while Chinese operations keep running, preserving network security and market continuity.

Conclusion: China Bitcoin Mining at the Helm—What’s Next for Bitcoin Price?

For investors, traders, and industry observers, the resurgence and stealth dominance of China bitcoin mining cannot be ignored. Evidence suggests that China’s true share of global bitcoin mining may be approaching 70% rather than the widely-quoted 14%. This reality is poised to impact the decentralization, security, and—and crucially—the bitcoin price for years to come.

As China bitcoin mining leverages its cost advantages and strategic network influence, the bitcoin price will continue to reflect the intertwined fortunes of miners, regulators, and market sentiment. Monitoring China’s evolving approach to cryptocurrency will be essential for anticipating shifts in the bitcoin price and the future direction of digital asset markets worldwide.